Struggling Romanians on Median Incomes Find Home Ownership Difficult, According to Research Report
In recent years, home prices and rental affordability in major European cities have significantly increased, with Southern and Eastern European cities experiencing notable hikes in rental costs. This trend is particularly noticeable in city centers, where rents have soared since 2020, often outpacing wage growth.
According to data sourced from Numbeo and Eurostat, home prices in Romania, including the capital city Bucharest, have risen by approximately 27.3% since 2020. Rents, too, have increased by around 12.5% on average during the same period. However, city center rents have risen even more steeply in Southern and Eastern Europe.
While rents in Romania vary by city and region, recent data indicates that average residential rents are increasing, though they remain below those in major Western European capitals. In Bucharest, the monthly rent for a three-bedroom apartment in the city center is likely within a similar range or slightly lower than cities like Budapest, keeping it comparatively affordable relative to Western Europe.
Affordability for average residents across Europe is becoming increasingly challenging. In some Western European cities, rents can consume over 70% of an average net salary. By comparison, average salaries in Eastern European cities, including Bucharest, are lower, which impacts affordability, but so are rents, balancing somewhat.
Despite the upward trend in prices, Bucharest remains one of the more affordable capitals in Europe. However, rising prices are reducing the cost advantage. Demand for housing remains high due to urbanization and economic factors, contributing to price increases.
In conclusion, Romania, and Bucharest specifically, offer more affordable housing than many major Western European cities. However, both rents and home prices have risen sharply in recent years. Average residents in Bucharest face increasing pressure on housing costs but generally still benefit from lower absolute costs compared to top-tier European capitals like London, Zurich, or Amsterdam.
This analysis was conducted by the Social Monitor, a project of Friedrich-Ebert-Stiftung Romania, an organization dedicated to political education, research, and dialogue. The article can be accessed by becoming a Romania Insider member or signing in (if already a member).
It is important to note that the analysis did not specify which other large cities in Romania are nearing the critical threshold of inaccessibility for home prices. However, the analysis indicates that other large cities in Romania, beyond Bucharest, are also approaching this critical threshold.
[1] Social Monitor (2025). Soaring Home Prices and Rentals in Major European Cities: Bucharest Remains Relatively Affordable but Under Pressure. Romania Insider. [2] Numbeo (2025). Cost of Living in Bucharest. [Online]. Available: https://www.numbeo.com/cost-of-living/in/Bucharest [3] Eurostat (2025). House Prices in the European Union. [Online]. Available: https://ec.europa.eu/eurostat/web/housing/data/database [4] OECD (2025). Housing Market Indicators. [Online]. Available: https://data.oecd.org/housing/housing-market-indicators.htm [5] Romania-Insider.com (2024). Average Rents in Romania Continue to Rise, but Remain Below Those in Major Western European Capitals. [Online]. Available: https://romania-insider.com/average-rents-in-romania-continue-to-rise-but-remain-below-those-in-major-western-european-capitals/
- The upward trend in both home prices and rents in Bucharest, as well as other large cities in Romania, indicates that these cities are approaching the critical threshold of inaccessibility for average residents, similar to major Western European cities.
- Businesses in the finance sector may find Romania, and particularly Bucharest, an attractive location for investments due to the relatively affordable housing costs compared to top-tier European capitals, despite the rising prices.
